If you have an IKEA nearby, I found there this week a small lined velvet drawstring pouch for $2.99. It is on the small side - about 8" tall for useable space inside the bag. I have a ball of yarn in there with a circular needle and a small bag project and it all fits fine.

I've been trying to keep my eye open for ones like the GoKnit pouch too as those seem way overpriced. I've seen drawstring bags for men's shoes that look similar but haven't found any.

I have 2 of these Lantern Moon bags and I love them. The handles are long enough to slip over my arm so I can knit while walking, and I like that the top is open, not drawstringed shut, so that if I need to set my knitting down in a hurry I can stuff it into the top of the bag first.

I have 2 of these Lantern Moon bags and I love them. The handles are long enough to slip over my arm so I can knit while walking, and I like that the top is open, not drawstringed shut, so that if I need to set my knitting down in a hurry I can stuff it into the top of the bag first.

I am in love with Earth shoes, and when you get these each shoe comes in its own bag in the box and depending on the type of shoe you order the sizes of bags differ. But I love using them b/c there is plenty of room and they just come with the shoes. (Although the shoes are kind of pricey.) But that's an option if your looking for a new pair of shoes too.